Datasets:

KushT

/

reuters-21578-train-val-test

like 0

REPUBLIC AUTOMOTIVE PARTS <RAUT> 4TH QTR LOSS Shr loss 85 cts vs loss 88 cts Net loss 2,410,000 vs loss 2,466,0000 Revs 24.0 mln vs 23.9 mln Year Shr loss 1.18 dlrs vs loss 81 cts Net loss 3,338,000 vs loss 2,275,000 Revs 101.4 mln vs 112.3 mln

S-K-I LTD <SKII> 2ND QTR JAN 25 NET Shr 81 cts vs 57 cts Net 3,660,273 vs 2,437,914 Revs 28.5 mln vs 23.1 mln Six mths Shr 29 cts vs 12 cts Net 1,325,755 vs 483,559 Revs 31.7 mln vs 26.4 mln

FERRO CORP <FOE> SETS JOINT VENTURE Ferro Corp said it has formed a joint venture with Paris-based Alsthom Inudstrial Group to export U.S. epxertise in specialty composite materials to the European market. Ferro said although the airframe and aerospace industries are the prime users of composite materials today, it plans to develop applications for the ground transportation and industrial markets in the near future. Ferro also announced it has agreed to purchase CompositAir, a developer of composit materials applications, for an undisclosed sum.

NYMEX RULE CHANGE SEEN BOOSTING ENERGY TRADE The New York Mercantile Exchange said it will introduce exchanges for physicals (EFPS) to its energy futures markets April one. An exchange spokeswoman said the change will allow oil traders that do not hold a futures position to initiate, after the exchange closes, a transaction that can subsequently be hedged in the futures market. EFPs, already in effect for platinum futures on NYMEX, are expected to increase the open interest and liquidity in U.S. energy futures, according to traders and analysts. The Commodity Futures Trading Commission approved the rule change in February, according to a CFTC spokeswoman.

U.S. REFINERY COPPER STOCKS FALL IN JANUARY Refined copper stocks held by U.S. refineries fell to 109,200 short tons at the end of January from 145,400 short tons at the end of December, the American Bureau of Metal Statistics reported. Commodity Exchange (Comex) copper stocks climbed to 103,000 tons in January from 93,300 tons in December. Combined refinery and Comex stocks eased to 212,200 tons in January from 238,700 tons in December. U.S. refined production declined to 117,600 tons in January from 137,400 tons in December. Crude output increased to 98,600 tons in January from 93,300 tons (revised lower) in December. Preliminary figures showed U.S. refined deliveries rose to 151,800 tons in January from 124,800 tons in December.

U.S. BRASS MILL COPPER STOCKS LOWER IN JANUARY U.S. brass mill copper stocks fell to 185,400 short tons (copper content) at the end of January from 191,200 short tons at the end of December, according to the American Bureau of Metal Statistics. Consumption by brass mills increased to 60,700 short tons in January from 48,900 short tons in December. Mills consumed 29,600 tons of refinery shapes in January versus 24,000 tons in December. Scrap consumption increased to 31,100 tons in January from 24,900 tons in December. Total brass mill shipments increased to 69,600 tons in January from 54,400 tons in December, while receipts rose to 63,800 tons from 47,100 tons.

MFS MUNICIPAL INCOME TRUST <MFM> SETS PAYOUT MFS Municipal Income Trust said it declared a monthly income distribution of 5.7 cts a share compared with 5.5 cts a share paid in the previous month. It said the distribution is payable March 27 to shareholders of record March 13.

ARMTEK <ARM> TO SELL INDUSTRIAL TIRE UNIT Armtek Corp, previously the Armstrong Rubber Co, said it agreed to sell its industrial tire and assembly division to a Dyneer Corp <DYR> for an undisclosed sum. It said the agreement covers the division's tire production facility in Clinton, Tenn., and its plants serving original equipment and replacement markets. Armstrong Tire Co, an Armtek unit, will continue to sell replacement industrial tires, the company said. Final closing is expected in the third fiscal quarter ending June 30.

PETROLITE CORP <PLIT> SETS PAYOUT Qtly dividend 28 cts vs 28 cts Pay April 24 Record April 10

NYMEX TO SUBMIT PROPANE PROPOSAL TO CFTC The New York Mercantile Exchange expects to submit a propane futures contract for federal regulatory approval within a few days, according to an exchange spokeswoman. As previously announced, the Board of Governors of the exchange approved the contract last month. The exchange will now submit the contract to the Commodity Futures Trading Commission, according to the spokeswoman. Contract specifications will resemble those of heating oil and gasoline futures. The contract size will be 1,000 barrels, or 42,000 U.S. gallons. The minimum price fluctuation for the propane futures contract will be 0.01 cent per gallon, or 4.20 dlrs a barrel, according to the exchange. The maximum daily price limit will be two cts a gallon on all contracts except spot. Trading will terminate on the last business day of the month preceding the delivery month. The exchange said delivery will be F.O.B from the seller's pipeline, storage, or fractionation facility in Mont Belvieu, Texas, which has a direct pipeline access to the Texas Eastern Transmission Pipeline (TET) in Mont Beliview. Delivery method will be by in-line or in-well transfer, inter-facility transfer or pumpover, or book transfer and cannot be done earlier than the tenth calendar day of the delivery month, according to the exchange. Deliveries must be completed no later than two business days prior to the end of the delivery month. Buyers taking delivery of the propane must pay the seller by certified check and the deadline for payment is 1200 EST (noon) of the second business day following receipt of the propane.

australian annual broad money supply growth 10.3 pct in January australian annual broad money supply growth 10.3 pct in January

YEUTTER BLASTS PROPOSED EC OILS AND FATS TAX U.S. trade representative Clayton Yeutter today said that if the European Community's Council of Ministers approves a tax on vegetable oils and fats, another major transatlantic trade row will erupt over agriculture. In a statement issued by the trade representative's office following a speech to the American Soybean Association's board of directors, Yeutter said the proposed tax would have a severe impact on American soybean farmers, who export some 2.4 billion dlrs in soybeans and products annually to the EC. "This is an unacceptable situation for us and its (vegetable oils tax) enactment would leave us no choice but to vigorously protect our trade rights and defend our access to the European market," Yeutter said. Yeutter said the proposed vegetable oils tax would violate EC obligations under the GATT. He said the effect of the tax would be to double the price of soyoil produced from imported soybeans, making margarine made from soyoil more expensive than tallow-based margarine, and closer in price to expensive European butter. "I am astonished that the EC commission would propose such a provocative measure so soon after we successfully resolved the agricultural dispute over the enlargement of the EC to include Spain and Portugal," Yeutter said. "It serves no purpose to embark on another confrontational course before the recent wounds have healed and as we are beginning to make progress on the Uruaguay round (of global trade talks)," he said.

EXXON <XON> CUTS HEATING OIL BARGE PRICE Oil traders in New York said Exxon Corp's Exxon U.S.A. unit reduced the price it charges contract barge customers for heating oil in New York harbor 0.75 cent a gallon, effective today. They said the reduction brings Exxon's contract barge price to 43.25 cts. The price decrease follows sharp declines in heating oil prices on spot and futures markets, traders said.

AUSTRALIAN JANUARY ANNUAL BROAD MONEY UP 10.3 PCT Australia's broad money supply rose 10.3 pct in the year ended January, up from a revised 9.6 pct in December, the Reserve Bank said. This compares with the previous January's 13.9 pct. In January broad money growth slowed to 0.7 pct from December's 1.5 pct and compared with nil growth in January 1986. Within the broad money total, non-bank financial intermediaries rose by 0.2 pct from a revised decline of 0.2 in December and a previous January's 0.8 pct increase. In the January year, NBFI's borrowings rose by 9.5 pct from a revised 10.1 in December and compared with a previous January's 12.8. At the end of January, broad money stood at 175,866 mln dlrs dlrs from December's 174,668 mln dlrs and a January 1986 level of 159,453 mln. In the same period, borrowings from the private sector by the NBFIs rose to 70,389 mln dlrs from December's 70,237 mln and the previous January's 64,299 mln.

ICO COUNCIL ENDS IN FAILURE TO AGREE QUOTAS A special meeting of the International Coffee Organization (ICO) council failed to agree on how to set coffee export quotas, ICO delegates said. Producers and consumers could not find common ground on the issue of quota distribution in eight days of arduous, often heated talks, delegates said. Export quotas -- the major device of the International Coffee Agreement to stabilise prices -- were suspended a year ago after coffee prices soared in reaction to a drought in Brazil which cut its output by two thirds. Delegates and industry representatives predicted coffee prices could plummet more than 100 stg a tonne to new four year lows tomorrow in response to the results of the meeting.

FRANCE HAS LITTLE ROOM FOR MANOEUVRE, OECD SAYS French industry is failing to produce the goods its markets need and its loss of competitiveness has left the government little room for manoeuvre to reflate the economy, the Organisation for Economic Cooperation and Development said. With gross domestic product likely to grow only 2.1 pct this year, the same rate as last year, unemployment could climb to 11.5 pct of the workforce by mid-1988, from its present 10.9 pct, it said in an annual review of the French economy. The report said the French economy was "increasingly ill-adapted to demand" selling goods at "uncompetitive relative prices on both domestic and export markets." "France's poor export performance reflects a geographical bias in favour of markets less dynamic than the average... And...A substantial loss of market share...In the past 18 months," it said. Pointing to a likely widening of the French trade deficit to around 2.9 billion dlrs this year from 2.4 billion in 1986, it warned that a further depreciation of the dollar against the franc could lead to "a (renewed) loss of competitiveness relative not only to the United States but also to the newly industrialised countries." This could result in further major losses of market share, particularly in the non-OECD area, which accounts for almost a quarter of French exports, it said. Until the competitive ability of industry improved, the authorities would have "little scope for macroeconomic manoeuvre, even if the unemployment situation or the need to encourage a pickup in investment could require demand to grow more briskly," it added. But rising unemployment could help to hold down wage demands, contributing to a slowdown in inflation to around a two pct annual rate this year and early next, the OECD said. Written mainly in December last year, the report took no account of a rise in oil prices early in 1987, and a 0.9 pct surge in January consumer prices, caused partly by the government's deregulation of service sector tariffs. "We took a bet that the freeing of prices would not provoke runaway rises, and it is not absolutely certain that bet has been lost," one OECD official commented. OECD officials said the January data and a rise in oil prices above the 15 dlrs a barrel average assumed in the report, indicated an upward revision in the inflation forecast to around 2.5 or three pct. The government last week revised its forecast up to between 2.4 and 2.5 pct from two pct, against last year's 2.1 pct. But the OECD backed the government's view that the underlying trend for inflation remained downwards this year, with a slowdown in domestic costs taking over from last year's fall in oil and commodity prices as the chief cause of disinflation. With French unit productivity costs now among the lowest in the OECD area, the inflation differential between France and its main trading rival, West Germany, could fall to just one pct this year, it said. On the other hand, the report noted, consumer prices for industrial goods and private services have been rising steeply as companies built up their profits. "For the disinflationary process to continue , and price competitiveness to become lastingly compatible with exchange rate stability, it is essential that wage restraint continue," it said.

PAINEWEBBER<PWJ> UNIT UPS SHAER SHOE <SHS> STAKE Mitchell Hutchins Asset Management Inc, a New York investment firm and subsidiary of PaineWebber Group Inc, said it raised its voting stake in Shaer Shoe Corp to 76,000 shares, or 7.5 pct, from 52,100 shares, or 5.1 pct. In a filing with the Securities and Exchange Commission, Mitchell Hutchins said it bought 11,900 shares between Jan 8 and Feb 24 at prices ranging from 12.125 to 12.75 dlrs a share and obtained voting control over another 12,000 shares. The firm has said it bought the stake as an investment on behalf of its clients, but said it has had discussions with Shaer management. It did not disclose the topic of the talks.

TELECREDIT INC <TCRD> 3RD QTR JAN 31 NET Shr 32 cts vs 22 cts Net 3,454,000 vs 2,224,000 Revs 33.2 mln vs 28.1 mln Nine mths Shr 64 cts vs 38 cts Net 6,935,000 vs 3,877,000 Revs 86.8 mln vs 70.9 mln

REXNORD <REX> TO REDEEM RIGHTS Rexnord Inc said it will redeem all of its preferred stock purchase rights for 10 cts a right effective today. Rexnord said the rights will be redeemed because it is expected its shares will be tendered under a January 30 takeover offer from Banner Acquisition Corp. The rights trade in tandem with Rexnord's common stock.

INVESTMENT FIRM BOOSTS LDBRINKMAN <DBC> STAKE Two affiliated investment firms and the investment funds they control said they raised their combined stake in LDBrinkman Corp to 653,600 shares, or 10.9 pct of the total outstanding from 585,600 shares, or 9.7 pct. In a filing with the Securities and Exchange Commission, Fidelity International Ltd, a Bermuda-based firm, said its funds bought 68,000 LDBrinkman common shares between Jan 5 and Feb 19 at prices ranging from 5.30 to 5.445 dlrs a share. Funds controlled by FMR Corp, a Boston-based investment firm affiliated with Fidelity, hold 251,100 shares, bringing the combined total to 653,600 shares, Fidelity said.

ITT'S <ITT> HARTFORD UNIT POSTS 4TH QTR GAIN Hartford Insurance Group, a unit of New York-based ITT Corp, said higher worldwide premiums help boost net income for the 1986 fourth quarter to 88.6 mln dlrs, from net income of 36.7 mln dlrs for the 1985 quarter. For the full year, Hartford said it earned 329 mln dlrs, up from 151.4 mln dlrs in 1985. Hartford said results for the year were aided by a gain of 46.5 mln dlrs on the sale of its remaining 52 pct stake in Abbey Life Group PLC. For 1985, the company posted a gain of 14.3 mln dlrs on the sale of 48 pct of Abbey Life. Hartford said total property-casualty and life-health written premiums rose 25 pct in 1986, to eight billion dlrs, from 6.4 billion dlrs in 1985.

CBT FEBRUARY VOLUME DOWN 14 PCT FROM YEAR AGO February volume at the Chicago Board of Trade, CBT, declined 14 pct from the year-ago month to 8,191,266 contracts, the exchange said. A relatively steady interest rate climate reduced volume in the most active contract, Treasury bond futures, by 17.5 pct from a year ago to 4,307,645 contracts. However, trading in most agricultural futures contracts increased last month, led by oats and corn futures. Oats volume tripled to 27,662 contracts, and corn volume increased 35 pct to 580,204 contracts. Wheat and soybean oil futures activity also rose from a year ago, while soybean and soybean oil volume slipped, the exchange said. Major Market Index futures increased activity 37 pct during the month with 194,697 contracts changing hands.

CANADIAN SEAFARERS THREATEN STRIKE Canadian seafarers are almost certain to go on strike this spring in a refusal to meet rollbacks in wages and benefits asked for by their employers, Seafarers' International Union official Roman Gralewicz said. "It's 99.9 percent--I guarantee you a strike," Gralewicz said in an interview. The union represents about 2,300 workers on the Great Lakes and Canada's East and West coasts. Contract talks broke off in January and a conciliator has been appointed to try to help settle the dispute. The current contract expires at the end of March. The seafarers' employers are also asking for a reduction in crew levels, a move which the union said would cost about 400 jobs.

DILLARD DEPARTMENT STORES INC <DDS> 4TH QTR NET Qtr ended Jan 31 Shr 1.16 dlrs vs 1.15 dlrs Net 32.4 mln vs 33.5 mln Revs 629.0 mln vs 538.6 mln Avg shrs 32.1 mln vs 29.2 mln 12 mths Shr 2.35 dlrs vs 2.29 dlrs Net 74.5 mln vs 66.9 mln Revs 1.85 billion vs 1.60 billion Avg shrs 31.7 mln vs 29.2 mln Note: Shr/avg shrs data show 2-for-1 split in Nov. 1985.

BANK OF NEW ENGLAND CORP <BKNE> QTLY DIVIDEND Qtly div 28 cts vs 28 cts prior Pay April 20 Record March 31

SOUTH KOREA'S LEADING INDICATORS FALL IN DECEMBER South Korea's index of leading indicators fell 0.1 pct to 164.1 (base 1980) in December after a 0.1 pct rise in November, representing a 16.1 pct year-on-year gain from December 1985, Economic Planning Board provisional figures show. The index is based on 10 indicators which include export values, letters of credit received, warehouse stocks, M-1 and M-3 money supply figures and the composite stock exchange index.

OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS Opec remains within its agreed output ceiling of 15.8 mln barrels a day, and had expected current fluctuations in the spot market of one or two dlrs, Indonesian Energy Minister Subroto said. He told reporters after meeting with President Suharto that present weakness in the spot oil market was the result of warmer weather in the U.S. And Europe which reduced demand for oil. Prices had also been forced down because refineries were using up old stock, he said. He denied that Opec was exceeding its agreed production ceiling. Asked what Opec's output level was now, he replied: "Below 15.8 (mln barrels per day)." He did not elaborate. He said there appeared to have been some attempts to manipulate the market, but if all Opec members stick by the cartel's December pricing agreement it would get through present price difficulties. He predicted that prices would recover again in the third and fourth quarters of 1987. He also reiterated that there was no need for an emergency Opec meeting. He said Opec had expected to see some fluctuations in the spot price. "We hope the weak price will be overcome, and predict the price will be better in the third and fourth quarters." Refiners, he said, appeared to have used up old stock deliberately to cause slack demand in the market and the price to fall. But Opec would get through this period if members stuck together.

OFFICIAL INQUIRY SET FOR AUSTRALIAN WHEAT INDUSTRY The government's industry aid and protection review body, the Industries Assistance Commission (IAC), will hold a 12-month inquiry into the Australian wheat industry, Primary Industry Minister John Kerin said. The IAC has been asked to report on the need for assistance to the industry and the nature, duration and extent of any aid, he said in a statement. He said the inquiry will be the first step in setting marketing arrangements to apply after June 30, 1989, when the underwriting and pricing provisions of the 1984 Wheat Marketing Act expire. Kerin said the broad-ranging reference would allow a full examination of all aspects of the wheat-marketing system. "The inquiry will be required to take into account changes which have taken place in the industry as a result of the agricultural policies of major wheat producing countries and the industry's capacity to adjust to any recommended changes," he said. "The inquiry is at an important time for the wheat industry, as the substantial fall in world prices is likely to trigger underwriting support from the government for the first time," he said. Kerin was referring to the government's underwriting of the guaranteed minimum price paid to wheatgrowers by the Australian Wheat Board near the start of the season. The IAC's report will be due at the same time as the findings of the current Royal Commission into Grain Storage, Handling and Transport, Kerin said. He said the timing of the IAC inquiry would allow its findings and those of the Royal Commission to be considered in later negotiations on wheat-marketing arrangements between the federal and state governments and the industry.

CRA Ltd 1986 net profit 138.2 mln dlrs vs 87.8 mln CRA Ltd 1986 net profit 138.2 mln dlrs vs 87.8 mln

TRANSAMERICA SELLS OCCIDENTAL LIFE AUSTRALIA Equity investment company <Battery Group Ltd> said it had agreed to buy <Occidental Life Insurance Co of Australia Ltd> from TransAmerica Corp <TA> of the U.S. For 105 mln Australian dlrs. The acquisition has been made possible by the efforts of its major shareholder, <Pratt and Co Financial Services Pty Ltd>, Battery Group said in a statement. The purchase will be partly funded by the issue of eight mln shares at 4.50 dlrs each and four mln free options to the Pratt Group, controlled by entrepreneur Dick Pratt, plus four mln shares to professional investors at 4.50 each, it said. The balance will be funded by debt, Battery Group said. The acquisition is subject to the approval of its shareholders. On completion of the share placements, Pratt Group will effectively have 51 pct of Battery's enlarged capital, assuming exercise of all options, it said. Battery now has 22 mln shares on issue. Battery said Occidental Life is a major underwriter of individual term life insurance and a recent but fast-growing entrant in the individual account superannuation market. It has some 200 mln dlrs in funds under management.

MALAYSIA RE-IMPOSES EXPORT DUTIES ON RUBBER The Malaysian government said it has re-imposed export duties on rubber at 3/8 cent per kilo after the gazetted price moved above the threshold price of 210 cents per kilo. The gazetted price, effective March 1, rose to 213-1/2 cents per kilo from February's 207. The duty for research remains at 3.85 cents per kilo and the replanting duty is also unchanged at 9.92 cents.

MALAYSIA RAISES DUTY ON PROCESSED PALM OIL The government said it raised the export duty on processed palm oil (PPO) to 64.06 ringgit per tonne from 40.96 ringgit, effective from March 1. Export duty on crude palm oil (CPO) was unchanged at 16.06 ringgit per tonne. The gazetted price of PPO rose to 796.8604 ringgit per tonne from 719.8286. That of CPO remained at 617.8238 ringgit. The export duty and gazetted price of palm kernel were left unchanged at 191.15 and 955.75 ringgit per tonne respectively.

comalco ltd 1986 net profit 57.1 mln dlrs vs loss 69.1 mln comalco ltd 1986 net profit 57.1 mln dlrs vs loss 69.1 mln

JAPAN'S UNEMPLOYMENT RATE SEEN RISING TO 3.5 PCT Japan's unemployment rate is expected to continue to climb to about 3.5 pct within the next year from January's three pct record, senior economists, including Susumu Taketomi of Industrial Bank of Japan, said. December's 2.9 pct was the previous worst level since the government's Management and Coordination Agency began compiling statistics under its current system in 1953. "There is a general fear that we will become a country with high unemployment," said Takashi Kiuchi, senior economist for the Long-Term Credit Bank of Japan Ltd. The government, which published the January unemployment figures today, did not make any predictions. "At present we do not have a forecast for the unemployment rate this year, but it is difficult to foresee the situation improving," a Labour Ministry official said. Finance Minister Kiichi Miyazawa said the government had expected the increase and had set aside money to help 300,000 people find jobs in fiscal 1987 beginning in April. Prime Minister Yasuhiro Nakasone told a press conference the record rate underlines the need to pass the 1987 budget which has been held up by opposition to proposed tax reforms. The yen's surge has caused layoffs in the mainstay steel and shipbuilding industries. Other export-dependent industries, such as cars and textiles, have laid off part-time employees and ceased hiring, economists said. Although the growing service industry sector has absorbed a great number of workers the trend is starting to slow down, said Koichi Tsukihara, Deputy General Manager of Sumitomo Bank Ltd's economics department. However, other economists disagreed, saying the service sector would be able to hire workers no longer needed by the manufacturing sector over the next five years. The economists said the service sector should grow as the government stimulates domestic demand under its program to transform the economy away from exports. Although Japanese unemployment rates appear lower than those of other industrialised nations, methods for calculating statistics make them difficult to compare, economists warned. "The three pct figure could translate into a relatively high figure if European methods were used," one economist said. More than half of January's 170,000 increase in jobless from a year earlier were those aged between 15 and 24, Sumitomo's Tsukihara said.

SOUTH KOREAN TRADE SURPLUS NARROWS IN FEBRUARY South Korea's customs-cleared trade surplus narrowed to 110 mln dlrs in February from 525 mln in January, provisional trade ministry figures show. In February 1986 there was a deficit of 264 mln dlrs. February exports rose to 2.87 billion dlrs, fob, from 2.83 billion in January and 2.30 billion in February 1986. CIF imports were 2.76 billion against 2.31 billion in January and 2.57 billion in February last year.

FISONS PLC <FISN.L> YEAR TO END-1986 Shr 27.5p vs 24.3p Div 3.95p vs 3.34p making 6.5p vs 5.5p Pre-tax profit 85.1 mln stg vs 72.3 mln Turnover 702.6 mln vs 646.7 mln Tax 18.4 mln vs 15.2 mln Finance charges 4.1 mln vs 5.4 mln Minority interest 0.1 mln vs 0.5 mln Extraordinary debit, being closure and restructuring costs 4.9 mln vs 3.7 mln Operating profit includes - Pharmaceutical 49.8 mln vs 39.0 mln Scientific equipment 23.2 mln vs 19.2 mln Horticulture 8.0 mln vs 8.7 mln Note - company said it plans one-for-one capitalisation

MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO THREE PCT - CREDIT SUISSE MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO THREE PCT - CREDIT SUISSE

SAUDI RIYAL DEPOSIT RATES EASE Saudi riyal interbank deposit rates eased across the board in a dull market which was long in day-to-day funds, dealers said. Today's quiet market continued a lull of several days in which traders were said to be waiting on the sidelines ahead of further clues to the direction of oil prices and the Saudi economy. Dealers cited some borrowing interest in two, three, and six-month deposits but said activity focused on short dates and one-month deposits as banks tried to lend surplus funds. Spot-next was put at 5-3/4, 5-1/4 pct, down from six, 5-1/2 yesterday while one-week rates were steady at six, 5-1/2 pct. One-month deposits declined to 6-1/4, 1/8 pct from 6-1/2, 1/4 on Monday, while three months was barely changed at seven, 6-15/16 pct. The spot riyal was little changed at 3.7501/03 to the dollar after quotes of 3.7498/7501 yesterday.

COMALCO SAYS LOWER COSTS HELPED RETURN TO PROFITS Comalco Ltd <CMAC.S> said its return to profit reflected reduced costs, improved primary aluminium prices and its withdrawal from a Japanese smelter venture. It said the earlier reported 57.1 mln dlr profit for the year ended December 31 against a 69.13 mln dlr loss in 1985 was also aided by lower interest rates on U.S. Dollar debt and greater sales of bauxite and aluminium. Comalco said it expected to pay at least a four cents per share final, dividend delayed until July 1 to take advantage of proposed dividend imputation laws. This would make five cents for the year against a first and final of one cent in 1985. Comalco said the aluminium industry continued to suffer from low prices and excess capacity, though the weak Australian dollar had helped earnings. Withdrawal from the <Showa Aluminium Industries KK> joint venture had been recapitalised in expansion by the <New Zealand Aluminium Smelters Ltd> project with Japan's <Sumitomo Aluminium Smelting Co Ltd>, permitting repayments and increases in liquid funds totalling 165 mln dlrs, it said. As previously reported Comalco's <Commonwealth Aluminium Corp> unit has conditionally agreed to sell its smelter at Goldendale, Washington, and port facilities at Portland, Oregon to <Columbia Aluminium Corp>. Comalco said it had made a 27.3 mln dlr extraordinary provision for Goldendale losses and closure costs but that if the sales agreement were completed it would reduce the provision made in the 1986 accounts. The other items in the total extraordinary loss of 140.5 mln dlrs were a 102.9 mln write-off of unrealised exchange losses and 10.3 mln for an increase in future tax provision.

CRA EXPECTS TO PAY FINAL DIVIDEND OF 10 CENTS CRA Ltd <CRAA.S> said it expected to pay a final 1986 dividend of not less than 10 cents a share after July 1, making 13 cents forthe year against 15 in 1985. The mining and smelting group earlier reported 1986 net earnings rose to 138.2 mln dlrs from 87.8 mln in 1985, against analysts' forecasts yesterday of 125 mln to160 mln. CRA said it was deferring consideration of a dividend until later this year to provide the benefit of dividend imputation to its shareholders. After July 1, dividends will be tax-free to shareholders provided they come out of earnings on which the full 49 pct company tax rate has been pid. The company operates on a substituted tax year, not the fiscal year ending June 30, and as a result has incurred tax at the 49 pct rate on 1986 earnings, CRA said in a statement. Consequently, it has funds available for distribution with dividend imputed but is waiting to see the imputation legislation before determining the final payout, it said. Despite the higher net earnings, CRA said 1986 was a poor year for the minerals industry, with the notable exception of gold producers. Prices for major metals expressed in real U.S. Dollars declined to the lowest levels in about 50 years, it said. Fluctuating exchange and interest rates added volatility and uncertainty, while the revaluation of the yen is leading to substantial restructuring of Japanese industry, CRA said. World demand for metals is growing slowly. Inventories have steadily declined, with supply and demand in better balance, but overcapacity continues, CRA said. Turning to contributions to its earnings, CRA said Bougainville Copper Ltd <BUVA.S> contributed 31.3 mln dlrs while its share of Comalco Ltd's <CMAC.S> net was 37.8 mln. Net earnings from iron-ore operations were 111.8 mln dlrs against 149.2 mln in 1985, it said. Lead, zinc and silver mining and smelting operations incurred a net loss of 66.8 mln dlrs against a 38.1 mln loss in 1985, CRA said. Coal activities resulted in a net profit of 36.7 mln dlrs against 34.1 mln, while salt raised its contribution to 4.7 mln from 2.8 mln. CRA's share of earnings from the Argyle diamond project amounted to 12.0 mln dlrs against nine mln in 1985. CRA said the main item in its 250.28 mln dlr extraordinary loss was a 172.9 mln writeoff of unrealised foreign exchange losses on borrowings as required by a new accounting standard. Other extraordinary items were 63.3 mln dlrs provided for closures and writedown of assets and a 14.1 mln increase in future tax provisions, CRA said. Cash flow continued at a high level, being 950.6 mln dlrs before capital expenditure against 1.02 billion in 1985. The strong cash flow, coupled with the proceeds of the 1986 rights issue and the use of existing cash balances, enabled group debt to be reduced by nearly 500 mln dlrs. CRA said it held forward contracts at year-end to buy 985 mln U.S. Dlrs to hedge part of its foreign debt. This cost 47.0 mln dlrs after tax, included in the net interest cost.

SWISS CAPITAL EXPORTS RISE IN JANUARY Swiss capital exports rose to 4.64 billion francs in January after 2.54 billion in December and a year earlier 3.64 billion, the Swiss National Bank said. New bond issues accounted for 4.12 billion of the total after December's 2.15 billion, and credits 525.1 mln after 389.9 mln. In January 1985, before the National Bank ended the distinction between notes and bonds, bond issues totalled 1.66 billion francs, notes 1.39 billion and credits 597.5 mln.

NO BUNDESBANK POLICY CHANGES EXPECTED THURSDAY The Bundesbank is unlikely to change its credit policies at its central bank council meeting on Thursday, as exchange rates and short-term interest rates have stabilized over the past few weeks, money market dealers said. Attention in the money market is focused on tomorrow's tender for a securities repurchase pact, from which funds will be credited on Thursday, when an earlier pact expires, draining 16 billion marks from the system. The tender was announced last Friday, because carnival festivities closed banks in Duesseldorf yesterday, and will close banks here this afternoon. Because of the disruption to business from carnival, minimum reserve figures for the start of the month are unrealistic, making it difficult for banks to assess their needs at the tender. Dealers said the Bundesbank would want to inject enough liquidity in this week's pact to keep short-term rates down. But because of uncertainty about banks' current holdings, the Bundesbank may well allocate less than 16 billion marks this week, and top it up if necessary at next week's tender. "I would not be surprised if the Bundesbank cuts the amount a little, to say 14 or 15 billion marks," one dealer said. "They would then stock it up at the next tender when the need is clearer," he added. An earlier pact expires next week, draining 8.5 billion marks from the system. Banks also face a heavy but temporary drain this month from a major tax deadline for customers. Banks held 52.0 billion marks on February 27 at the Bundesbank, averaging 51.0 billion over the whole month, just clear of the 50.5 billion February reserve requirement. Call money traded today at 3.85/95 pct, up from 3.80/90 yesterday.

ITALY CONSUMER PRICES RISE 0.4 PCT IN FEBRUARY Italy's consumer price index rose 0.4 pct in February compared with January after rising 0.6 pct in January over December, the national statistics institute (Istat) said. The year-on-year rise in February was 4.2 pct down from 4.5 pct in January and compared with 7.6 pct in February 1986. Istat said its consumer prices index for the families of workers and employees (base 1985) was 109.1 in February against 108.7 in January and 104.7 in February 1986.

MOBIL PLAN TO OPEN PEKING OFFICE, CHINA DAILY SAYS Mobil Corp <MOB.N> of the U.S. Plans to open an office in Peking to develop oil exploration opportunities in China, the China Daily said. It quoted Mobil president Richard Tucker, currently in Peking, as saying he is optimistic about investment prospects in China and that Peking will continue to encourage foreign private businesses to invest here. It said Mobil bought 73 mln dlrs of crude oil and oil products from China in 1986 and sold it lubricant and fertiliser, but gave no more details.

KLM TO TAKE 15 PCT STAKE IN AIR UK KLM Royal Dutch Airlines <KLM.A> said it agreed to take a 15 pct stake in Air U.K. Ltd, a subsidiary of British and Commonwealth Shipping Plc <BCOM.L>, in a transaction worth around two mln stg. A KLM spokesman said KLM already cooperated closely with Air UK, which runs 111 flights a week to Amsterdam's Schipol airport from nine UK cities. British and Commonwealth Shipping said last week it held preliminary talks about a KLM minority stake in Air U.K. But gave no further details. KLM said it hoped the move would attract more British feeder traffic to Amsterdam Airport.

3-MAR-1987 06:14:59.08 3-MAR-1987 06:14:59.08

U.K. RESERVES SHOW UNDERLYING RISE IN FEBRUARY Britain's gold and currency reserves showed an underlying rise of 287 mln dlrs in February, after a 72 mln dlrs rise in January, the Treasury said. The underlying trend, which is a guide to Bank of England operations to support the pound on foreign exchanges, is net of borrowings and repayments. This was above market expectations for a 100 mln dlrs rise. The Treasury said the Bank of England used the opportunity of strong demand to rebuild reserves after losses last autumn and said the underlying rise was still relatively modest. Actual reserves rose by 305 mln dlrs in February to 22.26 billion dlrs, after rising 29 mln in January to 21.95 billion. Accruals of borrowings under the exchange cover scheme were 36 mln dlrs last month, after 163 mln in January, while repayments were 16 mln dlrs after the previous 151 mln, a Treasury spokesman said. Capital repayments totalled two mln dlrs. In January, capital repayments totalled 14 mln dlrs, with a valuation change that resulted in a fall of 41 mln dlrs due to the quarterly rollover from the European Monetary Cooperation Fund swap. The Treasury would not comment on the Bank of England's market operations, but currency traders reported moderate Bank of England intervention to curb upward pressure on the pound today. A Treasury spokesman, commenting on the reserves figures, said that the government does not want sterling either to rise too far or to fall substantially from current levels. He noted that the Chancellor of the Exchequer Nigel Lawson stressed this after the recent Paris currencies meeting.

COMALCO SAYS LOWER COSTS HELP RETURN TO PROFITS Comalco Ltd said its return to profit reflected reduced costs, improved primary aluminium prices and its withdrawal from a Japanese smelter venture. It said the earlier reported 57.1 mln dlr profit for the year ended December 31 against a 69.13 mln dlr loss in 1985 was also aided by lower interest rates on U.S. Dollar debt and greater sales of bauxite and aluminium. Comalco said it expected to pay at least a four cents per share final dividend, delayed until July 1 to take advantage of proposed dividend imputation laws. This would make five cents for the year against a first and final of one cent in 1985. Comalco said the aluminium industry continues to suffer from low prices and excess capacity, though the weak Australian dollar had helped earnings. Comalco's Commonwealth Aluminium Corp unit said earlier it has conditionally agreed to sell its Goldendale smelter in Washington, and port facilities at Portland, Oregon to Columbia Aluminium Corp. Comalco said its extraordinary provision of 27.3 mln dlrs costs for Goldendale losses and closure may be reduced if the sales agreement were completed.

HONG KONG M3 RISES 2.2 PCT IN JANUARY Hong Kong's broadly defined M3 money supply rose 2.2 pct to 607.17 billion H.K. Dlrs in January, after a 3.1 pct rise in December, for a year-on-year rise of 23.3 pct, the government said in a statement. Local currency M3 rose 3.6 pct to 280.36 billion dlrs from December when it was up 3.4 pct from November, for a rise of 16.3 pct on the year. Total M2 rose 3.3 pct to 535.26 billion dlrs in January from December when it rose 3.5 pct on the previous month. Local M2 rose 4.7 pct to 249.03 billion dlrs in January from December when it climbed 4.2 pct. Total M2 and local M2 rose 32.5 pct and 23.9 pct on the year-ago month, respectively. Total M1 rose 12 pct to 62.84 billion dlrs in January after a 5.0 pct rise the previous month. Local M1 rose 12.3 pct to 57.97 billion dlrs after a 6.2 pct rise. Total M1 and local M1 year-on-year growth was 32.5 and 32.6 pct, respectively. Total loans and advances rose 3.3 pct to 517.19 billion dlrs from December when they rose 1.2 pct. Loans for financing Hong Kong's visible trade rose 3.4 pct to 36.72 billion dlrs after a 1.8 pct rise in December.

U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP The Bank of England said it revised up its forecast of the shortage in the money market today to around 500 mln stg from its initial estimate of 350 mln.

PAKISTAN TO RETENDER FOR RBD PALM OIL TOMORROW Pakistan will retender for 6,000 tonnes of refined bleached deodorised palm oil for second half March shipment tomorrow, after failing to take up offers today, palm oil traders said.

OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS Opec remains within its agreed output ceiling of 15.8 mln barrels a day, and had expected current fluctuations in the spot market of one or two dlrs, Indonesian Energy Minister Subroto said. He told reporters after meeting with President Suharto that present weakness in the spot oil market was the result of warmer weather in the U.S. And Europe which reduced demand for oil. Prices had also been forced down because refineries were using up old stock, he said. He denied that Opec was exceeding its agreed production ceiling. Asked what Opec's output level was now, he replied: "Below 15.8 (mln barrels per day)." He did not elaborate. He said there appeared to have been some attempts to manipulate the market, but if all Opec members stick by the cartel's December pricing agreement it would get through present price difficulties. He predicted that prices would recover again in the third and fourth quarters of 1987. He also reiterated that there was no need for an emergency Opec meeting. He said Opec had expected to see some fluctuations in the spot price. "We hope the weak price will be overcome, and predict the price will be better in the third and fourth quarters." Refiners, he said, appeared to have used up old stock deliberately to cause slack demand in the market and the price to fall. But Opec would get through this period if members stuck together.

JAPAN'S UNEMPLOYMENT RATE SEEN RISING TO 3.5 PCT Japan's unemployment rate is expected to continue to climb to about 3.5 pct within the next year from January's three pct record, senior economists, including Susumu Taketomi of Industrial Bank of Japan, said. December's 2.9 pct was the previous worst level since the government's Management and Coordination Agency began compiling statistics under its current system in 1953. "There is a general fear that we will become a country with high unemployment," said Takashi Kiuchi, senior economist for the Long-Term Credit Bank of Japan Ltd. The government, which published the January unemployment figures today, did not make any predictions. "At present we do not have a forecast for the unemployment rate this year, but it is difficult to foresee the situation improving," a Labour Ministry official said. Finance Minister Kiichi Miyazawa said the government had expected the increase and had set aside money to help 300,000 people find jobs in fiscal 1987 beginning in April. Prime Minister Yasuhiro Nakasone told a press conference the record rate underlines the need to pass the 1987 budget which has been held up by opposition to proposed tax reforms. The yen's surge has caused layoffs in the mainstay steel and shipbuilding industries. Other export-dependent industries, such as cars and textiles, have laid off part-time employees and ceased hiring, economists said. Although the growing service industry sector has absorbed a great number of workers the trend is starting to slow down, said Koichi Tsukihara, Deputy General Manager of Sumitomo Bank Ltd's economics department. However, other economists disagreed, saying the service sector would be able to hire workers no longer needed by the manufacturing sector over the next five years.

3-MAR-1987 07:35:58.11 3-MAR-1987 07:35:58.11

HK HOTELS SOARS ON TAKEOVER SPECULATION The price of Hongkong and Shanghai Hotels Ltd <SHLH.HK>'s stock soared on speculation of a takeover battle between major shareholders the Kadoorie family and the Evergo Industrial Enterprise Ltd <EVGH.HK> group, stock brokers said. They noted heavy buying in Hk Hotel shares after an announcement by Evergo's <China Entertainment and Land Investment Co Ltd> unit that it bought about 20 pct of Hk Hotels from the firm's deputy chairman David Liang for 1.06 billion dlrs. The stock rose 12 H.K. Dlrs to 62 dlrs today. Thomas Lau, Evergo's executive director, declined comment on whether the group is seeking a further stake in Hk Hotels. But he told Reuters the group will hold the 20 pct stake bought from Liang as long term investment. He said Evergo "was attracted by the underlying strength of Hk Hotels." Analysts said Evergo may be looking for a possible redevelopment of the Peninsula Hotel, one of Asia's best known hotels, and another site on Hong Kong island. Both are owned by Hk Hotels. <Lai Sun Garment Co ltd> yesterday said it acquired a 10 pct stake in Hk Hotels from Liang for 530 mln dlrs. Lau denied any link between China Entertainment and Lai Sun on their acquisitions of the Hk Hotels stake. "It is purely coincidence," he said. But analysts were not so certain, saying that the Evergo group, which has a reputation as a corporate raider, may team up with Lai Sun Garment for a takeover. Lau also denied any contact with the Kadoorie family, which analysts estimate has more than 20 pct of Hk Hotels. Michael Kadoorie is chairman of Hk Hotels. Lau said two representatives of Evergo will be nominated to the Hk Hotels board. A source close to the Kadoorie family said the family has not considered any countermoves so far. Analysts said it would be difficult for Evergo and the Kadoorie family to cooperate because of different management styles. "Evergo may want to split up the hotel management and property developments of Hk Hotels but that strategy may not fit the conservative Kadoorie family," said an analyst who asked not to be named. Another analyst noted the price of Hk Hotels had been distorted by the takeover talks because its net asset value is only worth about 50 dlrs a share. The offers by Evergo and Lai Sun were for 53 dlrs a share, though that is well below the current trading price. Trading was suspended today in shares of Lai Sun, Evergo, China Entertainment and the group's associate <Chinese Estates Ltd>. Chinese Estates lost 25 cents to 20.15 dlrs yesterday, China Entertainment five to 8.60 dlrs and Evergo one to 74 cents. Lai Sun gained 50 cents to 70.50 dlrs.

BRYSON PAYS 5.4 MLN DLRS FOR CENERGY CORP STAKE <Bryson Oil and Gas Plc> said it paid a cash consideration of around 5.4 mln dlrs for about 8.6 pct of <Cenergy Corp>, a U.S. Oil and gas exploration and production company. Bryson said its board has been considering a number of possible investments to expand the company's interests and believes the opportunity to acquire an investment in Cenergy provides a suitable extension to its existing U.S. Interests. Cenergy reported a net loss of 7.27 mln dlrs in the nine months to September 30, 1986 while total stockholders equity on the same date was 40.72 mln dlrs.

UNILEVER IMPROVES IN MOST SECTORS DURING 1986 The Unilever Plc and NV <UN.A> group saw improved performance in almost all sectors during 1986, the Anglo-Dutch group said in its results statement. Very good progress was made last year, while the recent acquisition of Chesebrough-Pond's Inc <CBM.N> was a significant addition which will greatly benefit the group in the years to come. Earlier, Unilever reported combined fourth quarter pre-tax profit of 276 mln stg, level with the year earlier period, making 1.14 billion stg compared with 953 mln for the 1986 full year. Unilever said it plans to change its depreciation policy to the more conventional practice of depreciating assets individually rather than depreciating fixed assets at average rates. The new method is expected to lead to a reduction in the accumulated provision for depreciation and thereby increase the net book value of tangible asssets by about 300 mln stg as at January 1, 1987. Unilever Plc shares are up 25p since yesterday at 2,575p in buoyant response to the results and share split proposal, though 1986 profits were not ahead of market forecasts, dealers added.

U.S. LEADING INDEX FELL 1.0 PCT IN JANUARY The U.S. index of leading indicators fell a seasonally adjusted 1.0 pct in January after a revised 2.3 pct December gain, the Commerce Department said. The department previously said the index rose 2.1 pct in December. The decline in January was the biggest for any month since July, 1984, when the index fell 1.7 pct. The January decrease left the index at 183.8 over its 1967 base of 100, and was led by a fall in contracts and orders for plant and equipment. A total of six of 10 indicators available for January contributed to the decline. Besides contracts and orders for plant and equipment, they were building permits, manufacturers' new orders for consumer goods, a change in sensitive materials prices, slower deliveries from vendors and higher average weekly claims for state unemployment insurance. Four of 10 indicators were positive, including stock prices, new business formation, average work week and money supply. The main factor for the December upward revision was new business formation. There was no revision in the 0.9 pct increase in the leading indicators index for November. The index of coincident indicators, which measures the current economy, fell 0.1 pct in January after increases of 0.7 pct in December and 0.2 pct in November. The index of lagging indicators, which measures past economic activity, rose 0.5 pct in January after a decrease of 0.5 pct in December and an increase of 0.2 pct in November.

COFFEE PRICE FALL SHORT TERM - DUTCH ROASTERS This morning's sharp decline in coffee prices, following the breakdown late last night of negotiations in London to reintroduce International Coffee Organization, ICO, quotas, will be short-lived, Dutch roasters said. "The fall is a technical and emotional reaction to the failure to agree on reintroduction of ICO export quotas, but it will not be long before reality reasserts itself and prices rise again," a spokesman for one of the major Dutch roasters said. "The fact is that while there are ample supplies of coffee available at present, there is a shortage of quality," he said. "Average prices fell to around 110 cents a lb following the news of the breakdown but we expect them to move back again to around 120 cents within a few weeks," the roaster added. Dutch Coffee Roasters' Association secretary Jan de Vries said although the roasters were disappointed at the failure of consumer and producer ICO representatives to agree on quota reintroduction, it was equally important that quotas be reallocated on a more equitable basis. "There is no absolute need for quotas at this moment because the market is well balanced and we must not lose this opportunity to renegotiate the coffee agreement," he said. "There is still a lot of work to be done on a number of clauses of the International Coffee Agreement and we would not welcome quota reintroduction until we have a complete renegotiation," de Vries added. With this in mind, and with Dutch roasters claiming to have fairly good forward cover, the buying strategy for the foreseeable future would probably be to buy coffee on a hand-to-mouth basis and on a sliding scale when market prices were below 120 cents a lb, roasters said.

F.W. WOOLWORTH CO 4TH QTR SHR 1.78 DLRS VS 1.64 DLRS F.W. WOOLWORTH CO 4TH QTR SHR 1.78 DLRS VS 1.64 DLRS

TRANSAMERICA <TA> TO HAVE AUSTRALIAN SALE GAIN Transamerica Corp said it will have an after-tax gain of about 10 mln U.S. dlrs on the sale of its Occidental Life Insurance Co of Australia Ltd affiliate to <Pratt and Co Financial Services Pty Ltd> of Melbourne for 105 mln Australian dlrs. The sale was announced earlier today in Australia. Proceeds will be used to enhance the growth of North American operations of its Transamerica Occidental Life subsidiary, the company said.

VIACOM INTERNATIONAL INC GETS ANOTHER NEW NATIONAL AMUSEMENTS BID VIACOM INTERNATIONAL INC GETS ANOTHER NEW NATIONAL AMUSEMENTS BID

BP OIL RAISES OPERATING PROFIT <BP Oil Ltd>, the U.K. Marketing and refining arm of British Petroleum Co Plc <BP.L>, raised its pretax operating profit on a replacement cost basis to 182 mln stg in calendar 1986, compared with 66 mln stg in 1985. Sales and operating revenue fell to 3.1 billion stg from 4.2 billion on a replacement cost basis. Historical cost operating profit was 61 mln stg, up from 16 mln. BP Oil said 1985 profits had been depressed by exceptional items. Its profit figures were stated before interest charges. Chief executive David Kendall said improved results mirrored benefits of a restructuring program undertaken in recent years. However, he warned future financial pressure on the industry will be severe. "The U.K. Oil marketing and refining industry will need to invest larger sums - probably around 500 mln stg a year - for a good many years," he said in a statement.

U.S. ASKS JAPAN END AGRICULTURE IMPORT CONTROLS The U.S. Wants Japan to eliminate import controls on agricultural products within three years, visiting U.S. Under-Secretary of State for Economic Affairs Allen Wallis told Eishiro Saito, Chairman of the Federation of Economic Organisations (Keidanren), a spokesman for Keidanren said. The spokesman quoted Wallis as saying drastic measures would be needed to stave off protectionist legislation by Congress. Wallis, who is attending a sub-cabinet-level bilateral trade meeting, made the remark yesterday in talks with Saito. Wallis was quoted as saying the Reagan Administration wants Japanese cooperation so the White House can ensure any U.S. Trade bill is a moderate one, rather than containing retaliatory measures or antagonising any particular country. He was also quoted as saying the U.S. Would be pleased were Japan to halve restrictions on agricultural imports within five years if the country cannot cope with abolition within three, the spokesman said. Japan currently restricts imports of 22 agricultural products. A ban on rice imports triggered recent U.S. Complaints about Japan's agricultural policy.

FIRSTCORP <FCR> SEES GAIN ON CONDEMNATION Firstcorp Inc said it weill report an after-tax gain of 1,827,000 dlrs or 56 cts per share primary and 42 cts fully diluted from the proposed condemnation and acquisition of a parking deck it operates by Wake County. The company said if it reinvested proceeds in a similar property within 24 months, the gain on the sale would be deferred for tax purposes.

U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN The Bank of England said it had revised its forecast of the shortage in the money market down to 450 mln stg before taking account of its morning operations. At noon the bank had estimated the shortfall at 500 mln stg.

NATIONAL AMUSEMENTS AGAIN UPS VIACOM <VIA> BID Viacom International Inc said <National Amusements Inc> has again raised the value of its offer for Viacom's publicly held stock. The company said the special committee of its board plans to meet later today to consider this offer and the one submitted March one by <MCV Holdings Inc>. A spokeswoman was unable to say if the committee met as planned yesterday. Viacom said National Amusements' Arsenal Holdings Inc subsidiary has raised the amount of cash it is offering for each Viacom share by 75 cts to 42.75 dlrs while the value of the fraction of a share of exchangeable Arsenal Holdings preferred to be included was raised 25 cts to 7.75 dlrs. National Amusements already owns 19.6 pct of Viacom's stock.

NATIONAL FSI INC <NFSI> 4TH QTR LOSS Shr loss six cts vs profit 19 cts Net loss 166,000 vs profit 580,000 Revs 3,772,000 vs 5,545,000 Year Shr loss 13 cts vs profit 52 cts Net loss 391,000 vs profit 1,425,000 Revs 15.4 mln vs 16.6 mln NOTE: 1985 year figures pro forma for purchase accounting adjustments resulting from March 1985 reeacquisition of company by its original shareholders before August 1985 initial public offering.

GREASE MONKEY HOLDING CORP <GMHC> YEAR NOV 30 Shr nil vs nil Net 130,998 vs 30,732 Revs 1,568,941 vs 1,0053,234

MINSTAR INC <MNST> 4TH QTR NET Oper shr loss 31 cts vs loss 30 cts Oper net loss 5,429,000 vs loss 5,216,000 Revs 257.5 mln vs 243.6 mln Avg shrs 17.5 mln vs 13.5 mln Year Oper shr loss eight cts vs profit 28 cts Oper net loss 1,324,000 vs profit 4,067,000 Revs 989.5 mln vs 747.9 mln Avg shrs 17.6 mln vs 15.7 mln NOTE: 1986 operating net loss excludes income from discontinued operations equal to 11 cts in the quarter and 66 cts in the year compared with 1.07 dlrs in the quarter and 1.23 dlrs in the respective periods of 1985. 1986 operating net loss also excludes extraordinary charges of 14 cts in the quarter and 54 cts in the year. 1985 operating net profit excludes an extraordinary gain of 47 cts.

TRANSFORM LOGIC <TOOG> REVISES RESULTS DOWNWARD Transform Logic Corp said it has revised downward its previously reported fourth quarter and year, ended October 31, results to reflect compensation expense for employee stock options. The company said resolution of this disagreement with its auditors came as a result of Securities and Exchange Commission involvement. The company will amend its option-granting procedure to conform to the SEC decision which will eliminate future charges, it added. Transform said its fourth quarter profit was revised to 305,082 dlrs, or two cts a share, from the previously reported 580,955 dlrs, which left the company with a fiscal 1986 loss of 249,814 dlrs, or two cts a share, instead of the reported 26,195 dlrs profit.

KASLER CORP <KASL> 1ST QTR JAN 31 NET Shr profit three cts vs loss seven cts Net profit 161,000 vs loss 367,000 Revs 24.3 mln vs 26.5 mln

U.S. COMMERCE SECRETARY SAYS EXPORT RISE NEEDED Commerce Secretary Malcolm Baldrige said after the release of a sharply lower January leading indicator index that a pickup in exports is needed. "The best tonic for the economy now would be a pickup in net exports," he said in a statement after the department reported the index fell 1.0 pct in January from December, the sharpest drop since a 1.7 pct fall in July, 1984. The main reasons for the January decline after a 2.3 pct December rise were declines in building permits, new orders for plant and equipment and for consumer and industrial goods.

PRECAMBRIAN SHIELD TAKES 51 MLN DLR WRITEDOWN <Precambrian Shield Resources Ltd>, earlier reporting a large loss against year-ago profit, said the 1986 loss was mainly due to a 51,187,000 dlr writedown on its U.S. operations, uneconomic coal and other mineral properties. Precambrian, which is 89 pct owned by <Mark Resources Inc>, said it took the writedown in accordance with new Canadian Insititute of Chartered Accountants guidelines for full cost method accounting by oil and gas companies. Precambrian earlier reported a 1986 loss of 53.4 mln dlrs, compared to profit of 4.5 mln dlrs in the prior year.

KENYAN ECONOMY FACES PROBLEMS, PRESIDENT SAYS The Kenyan economy is heading for difficult times after a boom last year, and the country must tighten its belt to prevent the balance of payments swinging too far into deficit, President Daniel Arap Moi said. In a speech at the state opening of parliament, Moi said high coffee prices and cheap oil in 1986 led to economic growth of five pct, compared with 4.1 pct in 1985. The same factors produced a two billion shilling balance of payments surplus and inflation fell to 5.6 pct from 10.7 pct in 1985, he added. "But both these factors are no longer in our favour ... As a result, we cannot expect an increase in foreign exchange reserves during the year," he said. The price of coffee, Kenya's main source of foreign exchange, fell in London today to about 94 cents a pound from a peak of 2.14 dlrs in January 1986. Crude oil, which early last year slipped below 10 dlrs a barrel, has since crept back to over 18 dlrs. Moi said the price changes, coupled with a general decline in the flow of capital from the rest of the world, made it more difficult to finance the government's budget deficit. Kenya was already spending over 27 pct of its budget on servicing its debts and last year it was a net exporter of capital for the first time in its history, he added. "This is a clear indication that we are entering a difficult phase as regards our external debts, and it is imperative that we raise the rate of domestic savings and rely less on foreign sources to finance our development," he said. "It will be necessary to maintain strict discipline on expenditure ... And members of this house will have to take the lead in encouraging wananchi (ordinary people) to be more frugal in satisfying immediate needs," the president added.

VIDEO DISPLAY <VIDE> TO SELL CABLE TV UNIT Video Display Corfp said it has reached a tentiative agreement to sell its existing cable television business for undisclosed terms and expects to report a gain on the transaction. The buyer was not named. The company said it will redeploy its service assets into manufacturing and distribution. It said the operations being sold accounted for about five pct of revenues for the year ended February 28 and lost money.

U.S. SINGLE-FAMILY HOME SALES FELL 6.8 PCT IN JAN AFTER REVISED 12.1 PCT DEC GAIN U.S. SINGLE-FAMILY HOME SALES FELL 6.8 PCT IN JAN AFTER REVISED 12.1 PCT DEC GAIN

COMMUNITY BANK <CBSI> TO MAKE ACQUISITION Community Bank System Inc said it has entered into a definitive agreement to acquire Nichols Community Bank for 2,800,000 dlrs in common stock. It said subject to approval by Nichols shareholders and regulatory authorities, the transaction is expected to be completed later this year.

PHARMACIA AB <PHAB ST> 1986 YEAR Sales 3.65 billion crowns vs 3.40 billion. Profit after financial items 821.2 mln crowns vs 740.2 mln. The 1986 results include a once-off writedown of 520 mln crowns for intangible assets, mainly the know-how paid for in the takeover of a number of high-tech companies by the group, Pharmacia said. Earnings per share after real tax including the writedown: 1.94 crowns vs 12.05 crowns. Earnings per share after real tax (not including the writedown): 12.38 crowns vs 12.05 Earnings per American Depository Receipt (ADR) according to U.S. Accounting principles after real tax including the writedown): 1.96 crowns vs 9.49 crowns. Earnings per ADR according to U.S. Accounting principles after real tax (without the writedown): 9.8 crowns vs 9.49. One ADR represents 0.75 pct of one B Free share in Pharmacia. The board proposed a dividend of 1.55 crowns vs 1.25.

CANADA REAL 4TH QTR GDP ROSE 1.1 PCT, AFTER 3RD QTR 1.1 PCT RISE - OFFICIAL CANADA REAL 4TH QTR GDP ROSE 1.1 PCT, AFTER 3RD QTR 1.1 PCT RISE - OFFICIAL

CANADA 4TH QTR CURRENT ACCOUNT DEFICIT 2.3 BILLION DLRS VS 3RD QTR 1.9 BILLION DEFICIT - OFFICIAL CANADA 4TH QTR CURRENT ACCOUNT DEFICIT 2.3 BILLION DLRS VS 3RD QTR 1.9 BILLION DEFICIT - OFFICIAL

MCLEAN INDUSTRIES <MII> UNIT TRANSERS SERVICE McLean Industries Inc said its shipping subsidiary, United States Lines Inc, reached an agreement in principle to transfer its South American service to American Transport Lines Inc, a subsidiary of <Crowley Maritime Corp>. Under the terms of the agreement, United States Lines will lease five vessels to American Transport for 15 months with an option to extend the period up to 10 years, the company said. In return, U.S. Lines will receive a fixed payment and a percentage of revenues for at least three years and possibly as long as American Transport utilizes its vessels and conducts trade in South America, the company said. The companies will consummate the transactions as soon as the required approvals are obtained, McLean said.

FIRST FEDERAL SAVINGS <FFKZ> YEAR NET Shr 78 cts vs one dlr Net 1,413,000 vs 1,776,000 Assets 705.3 mln vs 597.3 mln Deposits 495.6 mln vs 493.9 mln Loans 260.0 mln vs 379.7 mln Qtly div six cts vs six cts prior qtr Pay April 1 Record March 6 NOTE: 1986 net includes charges from accounting changes, from one-time expenses associated with a proxy contest and an increase in loan reserves. First Federal Savings and Loan Association of Kalamazoo is full name of company.

PILLSBURY CO <PSY> VOTES QUARTERLY DIVIDEND Qtly div 25 cts vs 25 cts prior qtr Pay 31 May Record 1 May

CANADA GDP RISES 3.1 PCT IN 1986 Canada's real gross domestic product, seasonally adjusted, rose 1.1 pct in the fourth quarter of 1986, the same as the growth as in the previous quarter, Statistics Canada said. That left growth for the full year at 3.1 pct, which is down from 1985's four pct increase. The rise was also slightly below the 3.3 pct growth rate Finance Minister Michael Wilson predicted for 1986 in February's budget. He also forecast GDP would rise 2.8 pct in 1987. Statistics Canada said final domestic demand rose 0.6 pct in the final three months of the year after a 1.0 pct gain in the third quarter. Business investment in plant and equipment rose 0.8 pct in the fourth quarter, partly reversing the cumulative drop of 5.8 pct in the two previous quarters.

EAST EUROPE WHEAT WINTERKILL POSSIBLE, ACCU SAYS Winter wheat crops in the western Soviet Union, Poland and eastern Czechoslovakia through northern Romania may suffer some winterkill over the next two nights, private forecaster Accu-Weather Inc said. Western USSR winter wheat areas have had only light and spotty snow and winterkill is possible tonight and tomorrow night as temperatures drop to minus 10 to 0 degrees F. Snow cover is scant in Poland, with only about 50 pct of the winter wheat areas reporting one to two inches of snow as of this morning. The remaining 50 pct of winter wheat crops do not have snow cover, making winterkill possible on each of the next two nights. Lowest temperatures will be minus 10 to 0 degrees F. Winter wheat areas from eastern Czechoslovakia through northern Romania had light snow flurries yesterday and last night, but amounts were an inch or less. With temperatures expected to fall to near 0 degrees F over the next two nights, some light winterkill is possible, Accu-Weather added.

CHARMING SHOPPES INC <CHRS> 4TH QTR JAN 31 NET Shr 28 cts vs 22 cts Net 14 mln vs 10.6 mln Revs 163.8 mln vs 127.3 mln Year Shr 81 cts vs 59 cts Net 40.5 mln vs 28.7 mln Revs 521.2 mln vs 391.6 mln

LAC <LAC> INTERSECTS MORE GOLD AT DOYON MINE Lac Minerals Ltd and <Cambior Inc> said they completed a second hole at their jointly owned Doyon mine in Quebec, which showed two significant gold intersections. One intersection graded 0.33 ounce gold a short ton over 44 feet at depth of 1,411 feet, while the other graded 0.22 ounce gold a ton over 23 feet at 2,064 feet, the companies said. The hole is 460 feet east of the previously reported first hole. They said they were now drilling another hole 460 feet to the west of the first drill hole and expected to report results in late March or early April.

THREE KILLED IN SOUTH AFRICA ZINC REFINERY CLASH Three black workers were killed and seven injured in fighting at a South African zinc refinery last night, Gold Fields of South Africa Ltd said. The company said two groups of workers began attacking each other at about 1000 local time with machetes, knives and sticks at a hostel at the Zincor plant, some 40 kms east of Johannesburg. It said the fighting was "quelled" after 25 minutes by its own security staff. Police were called but the fighting had ended by the time they arrived. A company spokesman said he had no idea of the cause of the fighting. An investigation was underway, he said.

FED EXPECTED TO ADD TEMPORARY RESERVES The Federal Reserve is expected to enter the U.S. Government securities market to add temporary reserves, economists said. They expect it to supply the reserves indirectly by arranging 1.5 to two billion dlrs of customer repurchase agreements. The Fed may add the reserves directly instead via System repurchases. Federal funds, which averaged 6.18 pct yesterday, opened at 6-3/16 pct and stayed there in early trading. Analysts said the rate is under upward pressure partly from settlement of 8.25 billion dlrs of five-year Treasury notes.

LSB INDUSTRIES INC <LSB> 4TH QTR NET Shr profit five cts vs loss 2.11 dlrs Net profit 375,061 vs loss 10.4 mln Revs 39.9 mln vs 37.8 mln Avg shrs 6,536,008 vs 4,939,895 12 mths Shr profit 47 cts vs loss 3.37 dlrs Net profit 2,837,288 vs loss 16.6 mln Revs 169.1 mln vs 149.4 mln Avg shrs 6,037,640 vs 4,937,378 NOTE: primary earnings per share are based on the weighted average number of common and dilutive common equivalent shares outstanding during each period after accounting for preferred stock dividends. The qtr and year 1985 includes a 6,000,000 provision for restructuring costs related to the sale of its Energy business and parts of its Bearing business. The qtr and year 1986 includes charges of 1,200,000 and 5,200,000, respectively, for restructuring costs and operating losses which were charged against the previously provided accruals for restructuring costs. The qtr and year 1986 includes deferred income taxes of 244,000 and 785,000, respectively. Year net 1986 includes operations of Friedrich Climate Master Inc, which the company acquired in August 1985, for the full period, while the comparable period for 1985 includes only operations from August 16, 1985, to Dec 31, 1985. Third qtr 1986 Includes extraodinary tax gain of 270,000 from early extinquishment of certain drafts payable.

COFFEE TALKS COLLAPSE EASES NEED FOR U.S. BILL The collapse of International Coffee Organization, ICO, talks on export quotas yesterday removes the immediate need to reinstate U.S. legislation allowing the customs service to monitor coffee imports, analysts here said. The Reagan administration proposed in trade legislation offered Congress last month that authority to monitor coffee imports be resumed. That authority lapsed in September 1986. A bill also was introduced by Rep. Frank Guarini (D-N.J.). However, the failure of the ICO talks in London to reach agreement on export quotas means the U.S. legislation is not immediately needed, one analyst said. Earlier supporters of the coffee bill hoped it could be passed by Congress quickly. "You're going to have a hard time convincing Congress (now) this is an urgent issue," the coffee analyst said.

PANSOPHIC SYSTEMS INC <PNS> 3RD QTR JAN 31 NET Shr 70 cts vs 56 cts Net 6,197,000 vs 4,880,000 Revs 24.1 mln vs 17.1 mln Nine mths Shr 1.38 dlrs vs 1.20 dlrs Net 12.1 mln vs 10.4 mln Revs 52.5 mln vs 41.8 mln

FORD MOTOR CO OF CANADA LTD 4TH QTR SHR 8.17 DLRS VS 55 CTS FORD MOTOR CO OF CANADA LTD 4TH QTR SHR 8.17 DLRS VS 55 CTS

NORTON <NRT> TO SELL SOUTH AFRICAN OPERATIONS Norton co said it has agreed to sell its remaining South African business, Norton co Pty Ltd, to <Global Mining and Industrial Corp> of South africa for undisclosed terms. The company said the unit accounts for less than two pct of Norton revenues and is being sold because "Growing societal pressures in the United States and the unsettled situation in south Africa had required a disproportionate amount of management tiome to oversee." Norton said the unit is profitable. Norton said it will provide the South Afrcian unit with future technical support, and products makde under that agreement will continue to be marketed under the Norton trademark.

HOME FEDERAL OF THE ROCKIES <HROK> 4TH QTR LOSS Shr loss 2.07 dlrs vs profit 36 cts Net loss 1,088,000 vs profit 187,000 Year Shr loss 12.23 dlrs vs profit 17 cts Net loss 645,000 vs profit 89,000 NOTE: Home Federal Savings and Loan Association of the Rockies. 1986 net includes tax credits of 165,000 dlrs in quarter and 189,000 dlrs in year. Net includes pretax loan loss provisions of 1,439,000 dlrs vs 127,000 dlrs in quarter and 1,701,000 dlrs vs 222,000 dlrs in year.

SAATCHI AND SAATCHI BUYS CLEVELAND CONSULTING Advertising agents Saatchi and Saatchi Co Plc <SACHY> said it was buying <Cleveland Consulting Associates Inc> for an initial consideration of 2.0 mln dlrs. Additional payments may be made annually through the year ending March 31, 1991 to bring the total consideration up to 9.5 pct of Cleveland's average post-tax profits in the last two years of the period. The purchase of Cleveland is a further step in Saatchi and Saatchi's fast growing consulting industry, the company said. It said its consulting operations now provide a platform for major future expansion. For the 12 months ended 31 March 1986, Cleveland had 479,000 dlrs in pretax profits and forecasts one mln for 1987. At the Saatchi and Saatchi annual meeting today, the company reported a particularly strong start to the current year, with profits sharply higher than the same period last year. Saatchi and Saatchi shares rose one pence on the Cleveland announcement to 885p after yesterday's 870p close.

FORD MOTOR CO OF CANADA LTD <FC> 4TH QTR NET Shr 8.17 dlrs vs 55 cts Net 67.7 mln vs 4.5 mln Revs 3.67 billion vs 3.54 billion Year Shr 12.19 dlrs vs 24.00 dlrs Net 101.1 mln vs 199.0 mln Revs 14.33 billion vs 13.35 billion Note: 90 pct owned by Ford Motor Co <F>

ANITEC IMAGE TECHNOLOGY CORP <ANTC> 2ND QTR NET Shr 33 cts vs 28 cts Net 3,722,000 vs 3,103,000 Sales 33.0 mln vs 31.8 mln Avg shrs 11.2 mln vs 11.1 mln 1st half Shr 68 cts vs 58 cts Net 7,585,000 vs 6,346,000 Sales 65.9 mln vs 61.3 mln Avg shrs 11.2 mln vs 11.0 mln NOTE: Share adjusted for three-for-two October 1986 stock split.

DUTCH MONEY MARKET DEBT BARELY CHANGED IN WEEK Loans and advances from the Dutch central bank to the commercial banks were barely changed at 12.9 billion guilders in the week up to and including March 2, the central bank weekly return showed. The Treasury's account with the bank dropped 1.3 billion guilders. Dealers said a larger amount of funds in the form of interest and repayments on state loans went out than came in the form of tax payments to the state. Notes in circulation rose 360 mln to 27.7 billion as the public withdrew cash to celebrate this week's Carnival festival or take an end-of-winter holiday break, dealers said. Current money market rates are at 5-3/4 to 6-1/4 pct for call money against 5-1/4 to 5-3/8 a week ago, and between 5-5/16 and 5-9/16 pct against 5-1/4 to 5-1/2 for one to 12 month periods, dealers said. The cause for the rise was a rather tight 4.8 billion guilders of special advances set by the Bank yesterday compared with 8.0 billion guilders for the previous set, dealers added. They expect the money market shortage to continue around 12 billion guilders this week. The weekly return showed total Dutch gold and currency reserves rose 11.3 mln guilders to 56.0 billion guilders.